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Top 10 Blockchain ETFs to Watch in 2019

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Fri, 05/31/2019 - 12:38
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  • Are top Blockchain ETFs simply tech stocks in expensive clothes? Find out whether you should invest in Blockchain ETFs if you are hesitant to buy Bitcoin

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Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

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Why should investors buy top Blockchain ETFs?

Blockchain has become one of the major buzzwords in the tech space over the recent years, and it comes as no surprise that many want to capitalize on the revolutionary technology. That prompted the appearance of Blockchain ETFs where old meets new.

ETFs can be bought and sold in the form of stocks. While cryptocurrencies are generally deemed to be extremely risky, Blockchain ETFs that are comprised of the most established stocks on the market are considered to be a much safer choice. U.Today has come up with the list of top 10 Blockchain-oriented ETFs to invest in 2019.    

BLCN

BLCN invests in stocks of the companies that are dealing with Blockchain. The ETF has more than 60 stocks. The advisory board of BLCN consists of crypto influencers who decide what stocks they should invest in.

Yahoo! Finance

Despite a bumpy start, Eric Ervin, the CEO of BLCN, is not deterred by disappointing numbers, taking a long view into the future. He believes that the technology is still too nascent, and we are dealing with a long-term investment.

BCNA

Reality Shares has yet another Blockchain ETF, and its focus is placed on China, the second largest stock market in the world. Ervin claims that China is betting big on the DLT technology — it has almost three times the amount of patents the US has. Not surprisingly, Alibaba is their main holding, but the fund also has exposure to China’s A-Shares — before they invest in a particular stock, they assess the number of Blockchain-related patents as well as the degree of innovativeness. Eventually, they only select the companies with the highest score.

Yahoo! Finance

BLOK

Amplify’s ETF was launched simultaneously with Reality Shares in mid-January of 2018. BLOK also intentionally excludes the words ‘Bitcoin’ and ‘Blockchain’ from its full name. Prior to that, the SEC issued a warning after a lot of stocks shoehorned these trendy words despite not dealing with crypto at all (case in point: Riot Blockchain (RIOT), which immediately saw its stocks skyrocketing).    

BLOK owns the stocks of IBM, NASDAQ, Overstock and other behemoths that are keen on the Blockchain technology.     

Yahoo! Finance

Notably, there is one key difference between BLOK and BLCN — Amplify is an actively managed ETF.

BKC

Back in May, BKC joined the crowded Blockchain ETF space. Brian Kelly, a Bitcoin permabull and a constant CNBC contributor, spearheads the fund. The holdings with the highest weighting in the fund include Overstock.com, GMO Internet and Global Unichip. Kelly states that BKC is a top-of-the-mind option for those who would like to invest in cryptocurrencies without dealing with enormous price swings and security issues. Overall, BKC holds the stocks of 32 companies.

Yahoo! Finance

KOIN

The fund utilizes artificial intelligence in order to discover new Blockchain stocks. It specifically targets stocks with related keywords.   

Yahoo! Finance

Since the list of KOIN’s holdings includes many big-name companies in the likes of Microsoft and Visa, it is definitely a safe bet for investors, but the predominance of conventional stocks makes it hard to make sizeable gains. Investing in companies with low market capitalization is considered to be a huge risk for such funds.

LEGR

First Trust Indxx has three groups of Blockchain stocks:

  1. Stocks of companies that have already come up with their own Blockchain-related products (for instance, IBM).   

  2. Those companies that are already utilizing the Blockchain technology, but they use technology that has been developed by other companies.

  3. The last group of stocks is attributed to those companies that are only dipping their toes in Blockchain.

Such a diverse approach to investment is considered to be one of the main advantages of LEGR. However, the fact that the fund rebalances its holdings to other stocks only twice a year makes it less attractive than other options.

Yahoo! Finance

LDGR

A Blockchain ETF is supposed to be more than tech stocks in expensive clothes. LDGR actually offers to invest in companies that have a proven record of investing in Blockchain-related stocks. Just like in the case with KOIN, it cherry-picks the companies with the help of AI.

Yahoo! Finance

According to the company’s CEO Lewis Bateman, they are exclusively focusing on investing in stocks of those companies that already have Blockchain-related patents. Mastercard Inc. and Royal Bank are among their top holdings. It hasn’t been an easy run for LDGR, but the same can be attributed to practically any other ETF that was launched after January. However, Bateman claims that this LDGR stands out among the rest of earlier launched funds because of its robust buildout.    

LINK

LINK is the first entry on our list that actually features the word ‘Blockchain’. In its portfolio, this actively managed fund features stocks of 31 global companies that are dealing with the nascent technology. Raj Lala, the CEO of Evolve ETFs, is a firm believer in the disruptive potential of the DLT, and the fund is an opportunity to capitalize on that.         

Yahoo! Finance

Things didn’t go particularly smooth for this fund since its stocks have shed more than 20 percent of their value since LINK’s inception in May. Hut 8 Mining Corp is at the top of its holdings list with a 10.8 percent share.

HBLK

Harvest Portfolios was responsible for launching the country’s first Bitcoin ETF, HBLK, which focuses both on large-scale and small-scale Blockchain businesses. Notably, this became the very first Canadian ETF that got the green light from regulators. Back in February, the Ontario Securities Commission approved the ETF.     

Yahoo! Finance

The main purpose of this ETF is to become an entry point for investors who are seeking access to the burgeoning tech sector. Subsequently, they buy the stocks of already established companies.   

BKCH

In June 2018, the Horizons fund was listed on the Toronto Stock Exchange (yet another Canadian Blockchain ETF on our list). In 2018, Blockchain ETFs became the salient feature of the country’s biggest stock exchange.  

Yahoo! Finance

The fund’s chief executive officer Steve Hawkins claims that he is not sure how big the adoption of the Blockchain technology is going to be, but the investments are necessary for building out the technology. BKCH, according to Hawkins, is focusing on well-established companies (the holdings of this ETF include the stocks of Nvidia Corp. and Digital Realty Trust Inc.).

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What differs Blockchain ETFs from Bitcoin ETFs?

Since there is a lot of confusion, it is worth pointing out that no aforementioned Blockchain stocks are dealing directly with cryptocurrencies. The Winklevoss brothers were on track to launch their own Bitcoin ETF, but they didn’t get the approval from the SEC. Bitcoin ETFs are seen as a catalyst for the next bull market, but SEC commissioner Hester Peirce (better known as ‘Crypto mom’), claims that it could take years for the much-anticipated approval.  

Hopefully, this article helped you pick up the best Blockchain ETF! Stay tuned with U.Today!   

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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  • Bitcoin (BTC) crashed to its lowest since December 2018 last week thanks to coronavirus — but for traders, cryptocurrency is now offering unparalleled opportunities

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Contents

The article was written in collaboration with TabTrader.

Bitcoin (BTC) crashed to its lowest since December 2018 last week thanks to coronavirus — but for traders, cryptocurrency is now offering unparalleled opportunities.

After several weeks of global stock market turmoil, Bitcoin was no longer able to escape the knock-on effect. Panicked investors seemed to sell whatever they could to cover losses elsewhere, and volatility across cryptocurrency markets exploded.

On March 12, 2020, BTC/USD saw its biggest single-day drop in history — at one point, losses totalled 60% on some exchanges.

Graph

BTC/USD chart on BitMEX. Source: TabTrader Web

Many expressed surprise and shock at what had happened. The last time Bitcoin traded below $4,000 was towards the end of its year-long bear market, following its trip to current all-time highs of $20,000.

Since then, an astounding recovery has taken place — and this time around, over a much shorter timeframe. Just one week after the crash, BTC/USD was tapping $7,000, before calming its advance to circle $6,000 support. 

Suslov: Whales are profiting from today’s crypto market

Even for cryptocurrency traders, such moves are rare, and capitalizing from them with the maximum effect is even rarer.

“The market has seen its bottom. And a recovery can be very swift. It is the best time to accumulate, and that’s exactly what the whales are doing,” Kirill Suslov, CEO of exchange aggregator TabTrader, summarized about the current climate.

Several thousand dollars up or down in days or even hours creates a logistical headache for many traders, who rely on multiple exchange interfaces all working seamlessly in order to place what are often highly sensitive trades.

Whales themselves can add to the problem, as was seen earlier in the year when a single trader appeared to move the entire Bitcoin market using a wall of orders on exchange Bitfinex.

Other phenomena often crop up which impacts a specific platform’s order book. This week, for example, BTC/USD broadly failed to crack $7,000, but on Bitstamp, a one-minute wick saw orders filled up to $7,139.

...And traders want to be copycats

Allowing anyone to monitor the major exchanges and trade funds on them at the same time was to some extent the impetus behind TabTrader and similar aggregate resources such as portfolio trackers. Price volatility, fluctuations in trader behavior and more only make business better for the sector, Suslov says.

“In summer 2020 Covid-19 will be behind us and asset prices will rise and crypto can potentially see exponential gains because of its role as a high-beta asset,” he continued.

BTC/USD on Bitfinex. Source: TabTrader Android

BTC/USD on Bitfinex. Source: TabTrader Android

Like exchanges themselves, Suslov has seen a marked turnaround in habits of his own clients — exchange traders with total holdings in excess of $6 billion.

To respond to demand, TabTrader is rolling out tailored options such as allowing traders to put any charts for any exchange into one area, then trade from that single screen using APIs.

Watchlist. Source: TabTrader Android

Watchlist. Source: TabTrader Android

Aiming to reduce the inefficiency of manually monitoring myriad platforms, each with their own peculiarities, other plans include customizing those trading terminals themselves to suit traders’ requirements.

Ultimately, Suslov says, a trading sector which is open to anyone on earth must be as efficient as possible, as its appeal will only spread to more non-technical mainstream consumers.

“This year, we will be letting traders copy the moves of exchanges’ most successful players,” he added, a move which echoes those of platforms such as UK-based eToro. TabTrader, however, will not take custody of any funds.

“Not your keys…” 

That’s the potential teething-problem-in-waiting for the cryptocurrency trading ecosystem, various analysts have warned. 

An influx of interest has not translated into traders becoming more crypto-aware — all too often, they trust third parties to store funds for them, with all the risk that that entails. According to one recent survey from Binance, even the vast majority of institutional investors do not control their private keys.

Nonetheless, the current turmoil facing the world’s economy is something that will undoubtedly benefit Bitcoin as the world’s first truly decentralized hard cap digital money.

“The virus has shown us the problem of the governments, with citizens being just servants who can be confined, blocked, isolated etc.,” Suslov concluded. 

“Governments can do whatever they want to us. Cryptocurrency can fight back, at least in the financial domain. The long-term future of Bitcoin and cryptocurrency is bright.”

About the author

Heewon Jang is a freelance journalist and the editor of CryptoGags section.
She is responsible for entertaining crypto content and bitcoin humour

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